AU Optronics Corp. is engaged in the design, development, production, assembly, and marketing of thin film transistor liquid crystal displays (TFT-LCD) and other flat panel displays. Segments The company operates in two segments, Display business and Solar business. Display Business The company sells its panels primarily to companies that design and assemble products based on their customers’ specifications, commonly known as original equipment manufacturing service providers, and to brand customers. The company’s original equipment manufacturing service provider customers, most of whose production operations are located in Taiwan or the PRC, use its panels in the products that they manufacture on a contract basis for brand companies worldwide. The company’s operations in Taiwan and the People’s Republic of China (PRC) allow the company to better coordinate its production and services with its customers’ requirements, especially in respect of delivery time and design support. The company also sells its products to some brand companies on a direct shipment basis. The company manufactures TFT-LCD panels at fabrication facilities commonly known as ‘fabs.’ Its 7.5-generation fabs are designed to process substrates with dimensions of up to 1,950 x 2,250 millimeters, and its 8.5-generation fabs are designed to process substrates with dimensions of up to 2,200 x 2,500 millimeters. Principal Products The company offers a range of display panels for the following principal product categories: Mobile PCs, which utilize display panels ranging from 5 inches to 17.3 inches, primarily for use in products such as notebooks and tablets. Monitors, which utilize display panels ranging from 17 inches to 27 inches, primarily for use in products such as desktop monitors. Consumer electronics products, which utilize display panels ranging from 2.01 inches to 19 inches or above for use in products such as mobile phones, digital still cameras, portable navigation displays, digital camcorders, automobile displays, amusement and printer displays and portable gaming consoles. LCD televisions, which utilize display panels ranging in size from 18.5 inches to 65 inches. The company designs, develops, and manufactures its panels to address specific needs of the end-products in which they are used, such as thinness, light weight, resolution, color quality, brightness, low power consumption, touch panel features, fast response time, slim form and wide viewing angles. Customers: The company sells its panels mostly to brand companies and original equipment manufacturing service providers with operations in Taiwan, the PRC, Japan and other areas. Suppliers: The company’s suppliers of raw materials and components are as follows: Glass Substrates: The company’s suppliers include Asahi Glass, Corning Taiwan, and Nippon Electric Glass. Driver-integrated Circuits: The company’s suppliers include Novatek, Orise, Raydium Semiconductor, and Renesas SP Drivers. Liquid Crystals: The company’s suppliers include JNC Corporation and Merck. Color Filters: The company’s suppliers include Dai Nippon Printing and Toray Industries, Inc. Polarizer: The company’s suppliers include BenQ Materials Corporation, LG Chem, Nitto Denko, and Sumika Technology Co., Ltd. Backlight Units: The company’s suppliers include Coretronic, EPOCH Chemtronics Corp, Forhouse, and Radiant Opto-Electronics. Seasonality: The company’s business is subject to seasonal fluctuations common in the display panel industry, which in turn is affected by the seasonality of demand for consumer and other end-products produced by its customers. The company’s low seasons start in the fourth quarter and go lower in the first quarter; while its high seasons start in the second quarter and go higher in the third quarter. Competition: The company’s principal competitors include LG Display and Samsung Display in Korea; Innolux, Chunghwa Picture Tubes and Hannstar Display in Taiwan; Sharp, Panasonic LCD, and Japan Display in Japan; and BOE, Century, Tianma, China Star Optoelectronics Technology and CEC-PANDA LCD Technology in the PRC. Solar Business The company manufactures upstream and midstream solar products such as polysilicon, ingots, wafers and solar cells. Through its subsidiaries, AUO Crystal Corp. and M. Setek Co., Ltd., the company manufactures polysilicon, ingots and wafers. Through AUO SunPower Sdn. Bhd (AUSP), a joint venture the company formed with SunPower Corporation, a manufacturer of residential and commercial solar systems in the United States, the company produces high-efficiency solar cells in Malaysia. The company also designs, develops, and manufactures solar PV modules, as well as produces solar PV systems and provides various value-added services for solar PV systems projects. Its solar PV modules are manufactured with multi-crystalline PV cells and mono-crystalline PV cells. The company’s PV modules are made with a highly strengthened frame design that enhances their abilities to withstand vibrations. The company sells its solar PV modules primarily to overseas customers, including installers, solar PV system integrators, property developers and other value-added resellers, which incorporate its PV modules into large on-grid integrated PV systems with inverters, mounting structures and wiring systems. In 2012, the company launched the alternative (AC) module, a high-efficient module with integrated microinverter in the United States. Also, starting from February 2012, the company began to use ‘BenQ Solar’ as its new brand name to market its solar PV products and services, which are sold in Europe, the United States, Asia, Africa and elsewhere. History AU Optronics Corp. was founded in 1996.
au optronics corp-spon adr
Hsinchu Science Park
No. 1, Li-Hsin Road 2
Phone: 886 3 500 8800
Fax: 886 3 564 3370www.auo.com
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